Tuesday, 07 Apr 2020 10:09 GMT

Xerox withdraws HP tender offer

After halting its tender efforts to purchase HP to focus on its own shareholders, Xerox has now announced it is withdrawing its offer.

The firm first began its tender proposition in November with an initial cash-and-stock offer of $27bn (£21bn). This was raised to $36bn (£27bn) after HP refused the offers and claimed it significantly undervalued the company.

Xerox maintained the pressure over the last four months and engaged in talks with HP shareholders, as well as nominating an entire new slate of directors.

HP remained firm and it was only when the COVID-19 pandemic impact began that Xerox decided to press pause on its efforts, to prioritise the health and safety of its employees, customers, partners and affiliates.

In the latest statement from Xerox, the firm says: “The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP.

The current global health crisis and resulting macroeconomic and market turmoil caused by COVID-19 have created an environment that is not conducive to Xerox continuing to pursue an acquisition of HP

“Accordingly, we are withdrawing our tender offer to acquire HP and will no longer seek to nominate our slate of highly qualified candidates to HP’s board of directors.”

The statement continues: “Xerox’s board of directors and management team are grateful for the significant backing we received from both Xerox and HP stockholders throughout this process. We thank the talented individuals who agreed to stand for election to the HP board, making time in their busy schedules to take on this responsibility when HP’s existing board did not.

“And finally, we thank the banks who agreed to finance this acquisition who never wavered in their commitments, even during the market turmoil caused by COVID-19.”

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